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Unlicensed Agents Pose Real Threat To PRS
Wednesday, June 01, 2011
Ian Potter, Operations Manager for ARLA;
"As Britain is apparently on the verge of becoming a 'nation of
renters', renting is now a necessary choice for many people who
cannot afford the deposit needed to buy their own home;
indeed, for some it is a more flexible option than buying. It is
critical, therefore, that that the Private Rented Sector is treated
with greater seriousness by the Government - the first step in this
approach should be enforcement of existing requirements to
protect tenants with action being taken by
local authorities to ensure a landlord provides a safe home.
"Additionally, many agents offer no consumer protection by means
of Client Money Protection or fail to offer consumer redress
through an Ombudsman Scheme. Both elements, when combined with a
professional training and qualification programme, will allow
tenants to enter this market with confidence.
"The threat posed by unlicensed agents grows more pressing
as the market expands, placing both landlords and tenants at
increased risk of financial loss. Until that time as the Government
steps in to regulate, our advice to anyone looking to rent a
property would be to use an ARLA-licensed lettings agent to ensure
they're protected against unethical agents. It was only last week
that an agent in the East Midlands was reported to have disappeared
with client funds. This type of behaviour cannot and must not be
tolerated."